Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
HLL posts flat 3QFY01 revenues - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Oct 14, 2000

    HLL posts flat 3QFY01 revenues

    HLL has reported a flat sales growth in 3QFY01 and a 16% increase in profits. The results of the company are below expectations due to reduced volumes in low price portfolio as a result of intense competition and general market slowdown.

    (Rs m) 3QFY00 3QFY01 Change
    Sales 24,516 24,619 0.4%
    Other Income 781 919 17.6%
    Expenditure 21,209 21,062 -0.7%
    Operating Profit (EBDIT) 3,307 3,557 7.6%
    Operating Profit Margin (%) 13.5% 14.4%  
    Interest 36 32 -9.8%
    Depreciation 310 299 -3.5%
    Profit before Tax 3,743 4,145 10.7%
    Tax 891 833 -6.5%
    Profit after Tax/(Loss) 2,852 3,312 16.1%
    Net profit margin (%) 11.6% 13.5%  
    Diluted number of shares (m) 2,200.6 2,200.6  
    Diluted Earnings per share* 5.2 6.0  

    The operating margins of the company however, improved because of material cost savings, material cost reductions and overall supply chain savings. Further tax savings on accounts of exports contributed in pushing the bottomline growth. HLL's strong export growth of 18% was led by home & personal care, beverages and marine products business.

    In personal wash segment overall volumes declined due to loss of 2% market share in the low price segment. Also tea sales declined by 10% due to reduced volumes in low price portfolio and fall in commodity prices. On the other hand fabric care, oral care and skin care registered a marginal growth of 7%, 2% and 4% respectively. HLL's deodorant business grew by 30% due to frequent new launches in the market and household care business witnessed a rise of 10%. The company's food business has shown a remarkable growth rate. Volumes in branded staples grew by 20% and culinary products by 27%.

    At the current market price of Rs 185, HLL is trading at 35 times its 9 months FY01 annualised earnings. Concerns about its slowing topline growth has adversely affected the company's stock price which is trading near to its 52 week low. The company's market cap to sales ratio of 3.8 times is below than its historic 5-6 times. The future premium valuations of the company depends on its ability to maintain its performance which again is related to economic growth rate. The company is striving hard to regain its market share in personal care, skin care and tea business. The initiatives taken by HLL could lead to better growth in fourth quarter of FY01.



    Equitymaster requests your view! Post a comment on "HLL posts flat 3QFY01 revenues". Click here!


    More Views on News

    Marico: Earnings Hit by Lower Volumes and Firming Input Prices (Quarterly Results Update - Detailed)

    Aug 9, 2017

    While GST implementation brought down volumes and profitability in the short run, Marico remains optimistic in the long run.

    HUL: A Slow End to a Dull Year... (Quarterly Results Update - Detailed)

    May 9, 2016 | Updated on May 11, 2016

    HUL announced its results for the quarter and year ended March 2016. While revenues rose by 4% YoY, net profits increased by 7% YoY.

    Hindustan Unilever: Deflationary Pressures Curb Growth (Quarterly Results Update - Detailed)

    Jan 21, 2016

    HUL announced its results for the quarter ended December 2015. While revenues were up by 3% YoY, profits came in lower by 22% YoY.

    Hindustan Unilever: Fails to meet expectations (Quarterly Results Update - Detailed)

    Oct 16, 2015

    HUL announced its results for the quarter ended September 2015. While revenues were up by 4% YoY, profits came in lower by 3% YoY.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 18, 2017 (Close)


    • Track your investment in HIND. UNILEVER with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks



    Detailed Financial Information With Charts